Credit Shelter Trust

Text in this Example:

Spouse leaves everythingto surviving spouseSpouse leaves his or her half of estatein a credit shelter trust$4 million estate$4 million for surviving spouse$2.835 million for children$1.5 million credit shelter trust$2.5 million $3.54 million for childrenNo tax at first spouse's deathTax at surviving spouse's death= $1.135 millionAt surviving spouse's death, trust assets pass to children tax-freeSurviving spouse's tax exemption reduces tax on his or her portion of estate(remaining tax: $460,000)Exemption eliminates tax on trust$2.5 million for surviving spouse's benefitCredit Shelter Trust